Fairfax media is reporting that St George Illawarra have put a $10 million price tag on a 50 per cent stake in the joint venture, as negotiations continue with the WIN corporation.
Fairfax Media understands discussions have stepped up in recent weeks between the Dragons and WIN television owner Bruce Gordon, in a bid to privatise part of the club. WIN currently has a seat on the Dragons board after paying about $9 million to allow the Illawarra Steelers Leagues Club to pay back its debts to St George Leagues Club. WIN secured a 20 per cent share of the Steelers Club and assets as a result.
It is the Illawarra share of the joint-venture that is up for sale, with St George to maintain their 50 per cent hold of the Dragons.
The key components of the negotiations include:
- The price of the buyout and how that may be paid. WIN may opt to pay off the club’s loan to the NRL;
- How many seats each side of the venture will get on what may be a reduced board. St George want to maintain at least three seats on the board, while offering WIN two seats. Illawarra may retain a non-voting member of the board;
- Non-negotiable stakeholder agreements including the name of the club and the logo;
- A need for a unanimous decision when deciding allocation of matches;
- An increased third-party presence – on which St George Illawarra have struggled to compete with the rest of the competition – and more branding opportunities using the large reach of WIN Corporation.
